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Mayra768, Home Buyer in

Seller accepts my offer & short sale addendum. Then does not provide his lender financials they request. Now he wants to cancel my contract. Help!

Asked by Mayra768, Fri Jul 27, 2012

I made an offer on a short sale in May, Sellers accepted, the Fla. Short sale addendum says 30 days if left blank but Seller has never provided the lender the docs they requested of His financials. Lender is still waiting for seller. Now seller wants to cancel my contract. Said my time was up. I've complied with all requirements, he has not. What can I do?

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7
Lila V Lopez’s answer
Good Morning,

Navigating through short sales is difficult, but definitely not impossible. Contrary to the belief of many, there is no need to steer clear of them or foreclosures. I have seen sellers find ways to get out of a sales contract and it has not been exclusively on short sales, these sorts of things do occur. In my experience, the key in getting any real estate transaction closed is to ensure that all parties involved properly communicate with each other. Your realtor will want to try and determine why the seller has been delayed in forwarding the financials to the bank. There are many different things that can be going on and possibly through communication it can be resolved in your favor. If the seller is looking to remain in the home, then quite possibly it may be time for you to move onto another home. If you wish to pursue this, then you may wish to seek legal counsel, but the unfortunate reality is, that in a short sale you can not force the seller to move forward if they choose not to do so. Keep in mind that this is a stressful time for this family as I am sure they never imagined they would find themselves in this situation, and it just may be that they need some additional time to come to terms with the situation. Again, the key is having proper communication between all parties.

Good luck with this and I hope for the best for all parties concerned.

Lila Lopez
RE/MAX Advance Realty
CDPE-Certified Distressed Property Expert
homesbylila@yahoo.com
2 votes Thank Flag Link Sun Jul 29, 2012
Time to walk. Sounds like the seller is going to ride out the forclosure and live there until eviction. I have seen it before and I will see it again where the owner decides to live "for free" until eviction.
1 vote Thank Flag Link Sat Jul 28, 2012
It sounds like your transaction is heading down the toilet. I would get your agent to "instigate" to the owner that the property will go into foreclosure if he does not cooperate. It is in the Seller's interest to cooperate. I would consult with your real estate attorney what legal options you might have. Anytime you do a short sale you have a 60/40 chance that the property will close. There are always obstacles along the way.

If you need anything, please feel free to contact me.

Good Luck!!

Best regards,


Pablo Torres
AF Realty, LLC
786-205-6988
pabtorres@af-realty.com
http://www.miamibuyproperties.com
0 votes Thank Flag Link Sat Jul 28, 2012
Hi Mayra,

Contact the title company so they let the seller know they are going to have a judgement against them if the bank forcloses, also the title company can get them relocation money and a deficency waiver from the lender. Remember the source is the title company they are the one processing the paper work, they don't want to waste their time either. Another obtion would be to contact a Real Estate Lawyer they only charge from $500 -$1,000 to work the purchase to the closing table. I could help you find an approved short sale or a owner resale that you can close on quickly, Best Regards.

Luis Giannattasio
REO/SHORT SALE CERTIFIED
Lic. Realtor
Cell: 786-326-6172
Xcellence Realty
Fax: 305-246-2525
sellingmiamihomes@gmail.com
Web sellingmiamihomes.net
0 votes Thank Flag Link Sat Jul 28, 2012
Good morning Mayra768,

It seems as if the Seller has motivations beyond selling this property; you can't know what they are, only that you won't be buying this home. Time to move on.

I've been helping First Time Buyers for 22 years as a mortgage professional and I will tell you what I have always told my clients here in New York: If you are a First Time Buyer, steer clear of foreclosures and short sales.

Foreclosures are someone else's headache. The home probably has not been well-maintained and you're a First Time Buyer adjusting to paying a mortgage. Do you really want to walk in the door to someone else's deferred maintenance that YOU will have to pay for? Also, if you're thinking there are deals to be had in terms of lower prices, mostly those "deals" go to professional investors who can pay cash, negotiate hard with a Lender, and close fast.

For Short Sales, my attitude of late is that First Time Buyers should steer clear. Short Sales tend to be a better deal for the homeowner than for the Buyer. You'll wait MONTHS for the homeowner's Lender to approve the short sale; maybe as long as Six or Seven Months. Meanwhile, you're stuck in a contract to buy that home. I closed a short sale recently with a Buyer who, after seven months said this at the closing table, "I don't even want this house anymore."

And he didn't even get the "deal" on price he thought he was getting! The house appraised for only slightly more than he paid for it at the short sale price. He walked into this deal thinking he was buying a home for $100,000 less than it's value. In the end that wasn't the case.

There are plenty of motivated Sellers with their homes listed on your local MLS. Go find a good Local Mortgage Banker, get prequalified, then find a great, experienced Realtor, and buy the home you want at the price you're willing to pay. It's a Buyer's Market, after all!

Trevor Curran
NMLS #40140
0 votes Thank Flag Link Sat Jul 28, 2012
Find another home. This was just not meant to be.
0 votes Thank Flag Link Sat Jul 28, 2012
In my opinion, nothing. But I am not a lawyer. If he doesn't provide the banks what they want, he isn't going to get the short sale approved.
0 votes Thank Flag Link Sat Jul 28, 2012
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